Consider an Economy in Which Existing Capital Is Being Used

question 73

Multiple Choice

Consider an economy in which existing capital is being used at a high degree, shortages in labour and goods markets are developing, and costs are rising. Which of the following terms best describes this stage of the business cycle?

• A)peak
• B)trough
• C)recession
• D)recovery
• E)slump

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Definitions:

Store Renovations

The process of making improvements or modifications to a retail space to enhance its appearance or functionality.

GST

Goods and Services Tax, a value-added tax levied on most goods and services sold for domestic consumption.

Sound System

A collection of electronic components designed to produce, amplify, and deliver audio signals.

Selling Price

The price at which an item is offered for sale to potential buyers.